Investment management firm Invesco has unveiled a new physical backed bitcoin ETP, tracking CoinShares Bitcoin Hourly Reference Rate index. The Invesco Physical Bitcoin ETP has a fixed 0.99% annual fee. The BTC will be held by Zodia Custody, a U.K.-based custodian registered with the U.K.’s Financial Conduct Authority (FCA). This is one of the earliest BTC ETPs in the U.K. and comes as something of a surprise, as the country’s officials are quite hesitant about the crypto market.
Invesco also launched this product as an Exchange-traded Note on the digital stock exchange Xetra.
Invesco also launched this product as an Exchange-traded Note (ETN) on the digital stock exchange Xetra, which German stock market operator Deutsche Boerse runs. ETNs are a type of ETP, and this product trades under the symbol of BTIC and follows the CoinShares Bitcoin Hourly Reference Rate index. This has also been registered with German financial authorities. Bitcoin has experienced massive growth this year along with the other major altcoins.
“Physical bitcoin is a more observable marketplace.”
Speaking about the draw of physical bitcoin backing, Invesco Head of ETFs and Indexed Strategies Gary Buxton said, “Physical bitcoin is a more observable marketplace. One of our concerns was the depth of synthetic liquidity as well as what that may do to valuations over time, and that is something we were not wholly comfortable with.” Invesco is also working on launching a bitcoin ETF in the United States, which is arguably its biggest move yet, is partnering with Galaxy Digital to do so. The U.S. has seen a few bitcoin futures ETFs be approved this year, including ProShares and VanEck. Surprisingly, India’s securities regulator also approved an Invesco crypto ETF, despite the regulatory uncertainty in the country.